Strategic Student & Senior Housing Trust Provides 3Q Update
Strategic Student & Senior Housing Trust, a publicly registered non-traded real estate investment trust sponsored by an affiliate of Strategic Asset Management LLC, provided it’s a third quarter 2022 update.
The company reported that, as of Sept. 30, 2022:
Senior living housing occupancies increased 10 basis points from 88.7% as of June 30, 2022, to 88.8% as of September 30, 2022.
Student living housing occupancy at YOUnion@Fayetteville, the company’s sole remaining student housing asset, reached 99%.
Excluding operations of the Tallahassee student property that the company sold during the first quarter of 2022, Strategic Storage compared operating results from the third quarter of 2022 to the third quarter of 2021:
Property revenues increased approximately $970,000.
Property operating expenses increased approximately $620,000.
The company warned that it still faces a few challenges, including:
Covid outbreaks in senior communities, most of which have resulted in minor inconveniences for residents and families.
“We intend to invest the appropriate capital improvements in our communities to keep them attractive and market competitive,” the company wrote in a letter to stockholders. “We are seeing strong resident demand for our YOUnion@Fayetteville student community which we believe will allow us to grow rents meaningfully in [during the 2023-2024 academic year.] At our senior living housing communities, we intend to continue to pass through rents and care fees to residents to hedge inflationary pressures on payroll and food costs.”
On Dec. 16, 2022, the board of directors approved a special cash distribution of $0.04 per share for all stockholders payable in December 2022. The company says the distribution is primarily the result of the sale of the YOUnion@Tallhassee student property in January 2022.
According to Strategic Student & Senior Housing Trust, the majority of the sale proceeds were used to repay the first mortgage on the property, reduce their bridge loan debt by $17 million and provide operating capital to the company.
“We continue to work hard to organically grow the bottom lines at our communities to enhance value to our stockholders,” said the company. “While the capital markets remain disrupted, we will maintain our diligence over those factors in our control and endeavor for a positive 2023 operating outcome.”
As of Sept. 30, 2022, Strategic Student & Senior Housing Trust owned one student housing property and four senior housing properties. The company last updated its estimated net asset value per share on March 17, 2022, which was $6.08 as of Dec. 31, 2022.
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